5 ways your company could save money on shipping

By Tarah Mills

When it comes to shipping, you want to watch your costs as much as you can because shipping costs can really eat into your profits. However, there are a number of proven ways to reduce shipping costs. Here are the five top tips for reducing your companies shipping costs.

1) Switch from boxes to polybags

Boxes can be one of the most expensive costs for a number of reasons. First of all, boxes take up a lot of space. That can increase your cost when it comes to storage, transport and shipping. However, you can cust down the costs of your shipping packages by switching from boxes to polybags. With polybags, your packages will be more flexible, lighter and easier to transport. In fact, you will notice that Amazon ships many of their smaller items in polybags. Therefore, if you ship a large number of smaller items, you should look at using polybags as your primary shipping packaging.

2) Find a quality freight shipping company

When it comes to shipping your packages, you want to make sure your items are in good hands. That’s why you will want to rely on a quality freight services company. It is a good idea to see what big, successful companies use for their freight shipping. From there, get a list of the top three freight shipping providers. Be sure to ask a number of questions about their shipping methods – air, ground and sea. Also, ask about the shipping company’s contingency plans when there is a disruption in their shipping. With the right shipping partner, you will have an effective way to move your products at a low cost.

3) Use a third party for your shipping insurance

Another expensive part of shipping is insurance. You will have to ensure all of your shipments. However, you don’t have to use your shipper’s insurance. Instead, you can use a third-party insurer. With a third party insurance provider, you can reduce your insurance costs while still protecting your packages. You will want to do your due diligence and check which third-party insurers are best for your business. Also, don’t just go with the cheapest third-party provider. You want to save money, but you don’t want to end up with an insurance provider who will not pay when you make a claim.

4) Get discounted shipping rates based on volume

If you ship at huge volumes, then you may be able to secure a discount from your current shipper. It’s a good idea to see what other prices you can get for your level of volume before you talk to your shipper about a discount. That will give you some leverage when it comes to negotiations. Even if you can secure just a 3% discount on your shipping rate, that will allow you to grow your profits by a significant rate.

5) Get discounted shipping supplies

Another way you can save on your shipping costs is to ask for a discount on your shipping supplies. The good news is that there are a number of companies that provide shipping supplies. You can talk to your current supplier about a discount. If they are not willing to give you a break on the price, you can shop around to other suppliers. This will allow you to get all the shipping supplies that you need at the lowest possible costs.

Bonus tip: Use regional fulfillment centers

If you are shipping items across the country or around the world, it may be a good idea to mass ship your items to a regional fulfillment center. This will help lower your overall shipping costs and reduce your shipping times.

Putting it all together

When it comes to lowering your cost of shipping, you have a number of strategies at your disposal. First, you can switch from boxes to polybags. Next, you can find a quality freight provider that can give you competitive rates. Next, you can insure with a third party. Finally, you can ask for a discount from your shipper and your shipping supplies vendor. If you are able to implement all of these strategies, then you can save some serious money on your shipping. That, in turn, can help you expand your profits and better grow your business.


Tarah Mills has always had a passion for writing. Her philosophy is that not only can writing be educational, but it can change the world. While she is dedicated to her work, she still enjoys a good game of basketball, curling up to a good book, and all things Star Wars. She currently resides in the Richmond, Virginia, area with her family.

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